626 CAttLii AiSti tmv PA&Uim. 



become so important that legislation for' its encouragemetit and devel- 

 opment has been resorted to, and a certain interest guaranteed by Gov- 

 ernment upon all capital invested in factories of frozen carcasses. 



For instance, in this Republic, Uruguay, it has been lately enacted, 

 in order to assist the development of the export of meat, that the state 

 will guarantee an annual interest of 6 per cent, upon all companies that 

 shall establish themselves within the Republic for the purpose of ex- 

 porting fresh meat, with a capital of not less than $500,000, to be in- 

 creased to 7 per cent, when the capital is not less than $3,000,000, the 

 total capital to be thus guaranteed, however, not to exceed $6,000,000. 



This guarantee is subject to the following conditions : 



(4) No guarantee to be granted until the proposer shall have deposited 

 in one of the banks of the capital a sum equal to 1 per cent, of the 

 amount of capital upon which the guarantee is asked. This deposit 

 may be made in coin, or in Uruguayan bonds at the market value, or in 

 real estate. In this last case the owner still to receive the revenue de- 

 rived from such property. 



(5) So soon as the company satisfies the Government that work has 

 been done in the country equivalent to the amount of deposit, suoh de- 

 posit to be returned. In the event of the enterprise not being carried 

 out within the legal period stipulated, the deposit shall be forfeited to 

 the state, in accordance with article 14. 



(6) Before any payment can be made on behalf of guarantee, the com- 

 panies must satisfy the Government that they have complied with the 

 following conditions : 



(a) That they have employed in the country in constructive works, on 

 land and afloat, a capital of not less than $100,000, if acting under 

 article 1, or of $500,000, if acting under article 2. 



(b) That the annual export has actnally amounted to a minimum of 

 15,000 head of cattle or 120,000 sheep for each $500,000 of capital. 



(7) The guarantee to be granted upon the capital actually raised for 

 these enterprises, including that employed in the construction of estab- 

 lishments in the country and also the working capital in circulation. 



(8) This guarantee to be granted only once, and in no case will the 

 duration of the guarantee exceed ten years. 



(9) When the companies eara more than 10 per cent, per annum they 

 will be liable to refund to the Government the excess until they shall 

 have repaid any sums received to make up the guaranteed interest. 



(10) The executive power is authorized to sanction the operations of 

 the companies m such localities as they may select for the establish- 

 ment of freezing depots, when these do not act to the prejudice of other 

 interests, and conform to the law of the Eepublic. 



(11) The steamers of the companies will enjoy packet privileges. 



(12) Companies will be at liberty to give up the guarantee at any 

 time, provided they repay to the state all sums received as guaranteed 

 interest. When this is done, the oflScial inspection of their operations 

 will cease, but all their other privileges will continue as before. 



(13) In case the state be called upon to make up the interest to the 

 guaranteed rate, the executive power is authorized by this law to take 

 the sum required out of the general revenue of the country, and in case 

 of there not being sufBcient funds, it will at once propose to the legisla- 

 tive body to grant the sum necessary for payment. 



(14) The executive power is hereby authorized to concede at once 

 guarantees to the company or companies which, in its judgment, are 

 prepared to fulfill the conditions laid down in this law, but cannot allow 

 more than two years for the installation of the works. In the event 



